Entrevista a Randall Wray

The full interview with NEP’s Randy Wray by EKO de Público TV in Spain. This is the complete interview. Questions from the interviewer are in spanish. Randy’s responses are subtitled in spanish. This was recorded on March 6, 2015 as part of his introduction of the spanish version of the Modern Money Primer.


0 responses to “Entrevista a Randall Wray

  1. Jerry Hamrick

    Another good presentation. I wish those who control economic policy here would pay attention.

  2. Hola: Something that has been bugging me. In the sector analysis: how is bank money creation factored into the private sector income/spending formula? Banks create money, when its lent its probably spent, which in turn is someone else’s income – so its a wash. But it represents a significant injection of money into the private sector which is not coming from the government sector or the foreign sector. So how is it accounted for in your sector analysis?

    • Good question. I understand they are not ‘net’ financial assets (the loan must be repaid), but I’ve found that a bit confusing as well.

    • Erick Borling

      When an American bank “creates” money (via loans), that money is actually created by Federal Government. In order to create money, there’s a strange dance between the banks, federal reserve, and the treasury which takes place behind the scenes. I won’t try to describe it, other experts here will do that far more reliably.

  3. Frank Lansdorp

    Since no one else directly answers your question, I will try.
    Bank money in the private sector is exactly included in the sector balances model.
    You are completly right: bank lending (an increase in private debt) injects money in the economy.
    Paying back debts in the private sector to the banks (private sector delevering) decreases the spending power in the economy. You are completely right, identical to what MMT also states. So where is your problem?
    Although not a direct proponent of MMT, you might look at Steve Keen:
    Scroll down to ” Should governments run surpluses?”. After some ten minutes there are simply slides that demonstrate the sectoral balances model.